Huntsville, Alabama, approves long-term contract with TVA

137 of 154 local power companies have signed new TVA pacts

Staff Photo by Robin Rudd / The Tennessee Valley Authority logo adorns their offices in downtown Chattanooga on May 7, 2019.

TVA's biggest customer in Alabama is signing on to buy power from the federal utility for the next 20 years.

The Huntsville City Council on Thursday night approved a 20-year power purchase agreement between Huntsville Utilities and the Tennessee Valley Authority.

Following last month's decision by Chattanooga's EPB to sign a similar 20-year agreement with TVA , 137 of the 154 local power companies that buy their power from TVA have now signed on to the long-term agreements.

Previously , most of the municipalities and power coops that buy and distribute TV-generated electricity operated under 5- to 10-year purchase agreements with TVA. Huntsville Utilities previously had a 10-year agreement with TVA to buy all of its power from the federal utility.

TVA began last year offering the 20-year purchase contracts - along with 3.1%